Interbank market news scan: Central banks, foreign exchange; Peoples Bank of China not afraid of enough liquidity …

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Naci Agbal, Turkey’s new central bank governor, began his career as a financial inspector three decades ago. He hopes such devotion to the rules will see him – and the economy – through one of the trickiest turnaround jobs in emerging markets. NEWSMAKER-Back-to-basics Agbal hopes this time is different at Turkey’s central bank | Nasdaq

China provided medium-term funds to lenders on Thursday, giving banks some relief after its cash drainage last month triggered the country’s worst liquidity squeeze since 2015. China Rolls Over $31 Billion in Medium-Term Loans to Banks – Bloomberg

Zambia became the second country in the world to increase its benchmark interest rate this year as it seeks to bring down “spiraling” inflation that’s at a five-year high. Zambia Central Bank Hikes Rate to Fight Surging Inflation – Bloomberg

Weakness in both the dollar and euro is posing a dilemma for investors about which is the best source of funding for emerging-market carry trades. On balance, the U.S. currency is still first choice. Carry Traders Clash Over Which Major Currency Has Most to Lose – Bloomberg

New York Attorney General Letitia James announced on Wednesday her office has sued to shut down Coinseed, a cryptocurrency-trading app that prosecutors allege ignored securities laws and defrauded thousands of investors. NY AG sues to shut down crypto app Coinseed alleging it sold a worthless currency and defrauded investors (msn.com)

Economist Nouriel Roubini, known as “Dr. Doom” for his pessimistic market views, said “the Flinstones had a better monetary system than bitcoin” in an interview with Bloomberg Wednesday morning. The NYU professor argued bitcoin and other digital tokens shouldn’t even be considered currencies because they lack many of the basic traits currencies must possess. ‘Dr. Doom’ economist Nouriel Roubini says ‘the Flintstones had a better monetary system than bitcoin’ and the token should not be considered a currency (msn.com)

Currency pairsExchange Rate as of 4:15 pm 16 February 2021(1) As of 2:10 am EST Exchange Rate as of 18 February 2021(2)(3)
AUD/USD0.7762 0.7754
USD/CAD1.2694 1.2699
USD/CNY6.4567 6.4505
EUR/USD1.2126 1.2044
USD/INR72.6000 72.7270
GBP/USD1.3855 1.3851
USD/JPY104.9400 105.9000
USD/MXN19.9300 20.2248
USD/DKK6.1325 6.1742
USD/NOK8.4558 8.4960
BTC/USD  48,358.6000
ETH/USD  1,700.6400
Sources: Federal Reserve (1), Reuters-FX rates (2), OANDA-Crypto rates (3)

Interbank market news scan: Central banks can step-up their data analytics game …

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Keeping up with data collection, capture, normalization and storage is an enormous task. In the best-case scenario, central banks systematically collect structured data electronically through reporting systems and directly from banks, brokers and market data feeds. However, in many instances, data collection is ad hoc, poorly structured, or in a non-electronic form. Leveraging Technology for Central Bank Surveillance | Nasdaq

Central bank digital currencies (CBDCs) may signal the end of physical cash and thus propel interest in cryptocurrency from the darker side of society, according to Mike Dolan, editor-at-large for finance and markets at Reuters.

Namibia’s central bank held its benchmark interest rate at a record low in its first meeting of the year, striking a balance between supporting the economy and protecting its currency’s peg to the South African rand. Namibia Holds Interest Rate at 3.75% for Third Straight Meeting – Bloomberg

The National Bank of Hungary is likely to leave interest rates unchanged next Tuesday after a recent increase in closely watched inflation measures and continued volatility in prices and financial markets. Hungarian central bank to leave rates steady as inflation creeps higher | Reuters

Currency pairsExchange Rate as of 4:15 pm 16 February 2021(1) As of 11:35 am EST Exchange Rate as of 17 February 2021(2)(3)
AUD/USD0.7762 0.7729
USD/CAD1.2694 1.2724
USD/CNY6.4567 6.4542
EUR/USD1.2126 1.2032
USD/INR72.6000 72.8130
GBP/USD1.3855 1.3843
USD/JPY104.9400 106.0900
USD/MXN19.9300 20.2760
USD/DKK6.1325 6.1762
USD/NOK8.4558 8.5090
BTC/USD  46,403.2000
ETH/USD  1,686.7300

Interbank market news scan: Australian central bank wants to see a tighter labor market …

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Australia’s central bank believes it will take a significant and sustained tightening in the labor market to lift inflation to more comfortable levels, a tough task that could take years to achieve. Australia’s central bank says tighter labor market will lift inflation (cnbc.com)

A body representing cryptocurrency and blockchain stakeholders in Nigeria has joined other crypto industry players in assailing the recent Central Bank of Nigeria (CBN) directive to banks. The CBN order, which seeks snuff out crypto entities from the banking system, took effect on February 5, 2020. Nigeria Crypto Ban: Stakeholder Body, Politicians Assail Central Bank’s Directive to Financial Institutions – Emerging Markets Bitcoin News

Indonesia’s central bank is seen trimming its benchmark rate for the first time this year on Thursday, on top of the five rate cuts it has delivered since the start of the coronavirus pandemic, according to a majority of analysts in a Reuters poll. Indonesia’s central bank seen making this year’s first rate cut | The Star

As cryptocurrencies increasingly go mainstream, pressure is growing on the world’s biggest central banks to move forward with their plans to issue digital cash and fend off private sector threats to traditional money. Bitcoin’s mainstream charge raises stakes for central bank digital cash – Technology – Dunya News

Currency pairsExchange Rate as of 4:15 pm 8 February 2021(1) As of 12:23 am EST Exchange Rate as of 16 February 2021(2)(3)
AUD/USD0.7656 0.7803
USD/CAD1.2781 1.2619
USD/CNY6.4664 6.4542
EUR/USD1.2035 1.2139
USD/INR72.8500 72.6320
GBP/USD1.3714 1.3939
USD/JPY105.4400 105.5800
USD/MXN20.1300 19.9410
USD/DKK6.1785 6.1255
USD/NOK8.5428 8.3658
BTC/USD  45,471.7000
ETH/USD  1,683.8900
Sources: Federal Reserve (1) ; Reuters-exchange rates (2) ; OANDA-cryptocurrency (3)

16 February 2021

Interbank market news scan: Central banks and Foreign exchange …

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Central banks in emerging economies are set to move in different directions this year: Some remain in an easing mode and are expected to lower borrowing costs further, with Bloomberg Economics predicting cuts in China, Indonesia, India and Mexico. Emerging-Market Central Banks Are Set for a Hawkish Turn (msn.com)

Climate activists are warning that central banks are taking a “risky gamble” with their strategies for addressing the financial risks from global warming. Central Banks Criticized for Risky Gamble on Climate Fight (msn.com)

The truth about capital flows is worth revisiting and remembering as economists, media members and politicians continue to waste so much brain space and emotion on the doings of central banks. They’re mistaken. Central banks quite simply do not matter. Jack Ma’s Ant Group Further Exposes The Fed And Central Banks As Afterthoughts (forbes.com)

India’s foreign exchange reserves declined by $6.240 billion during the week ended February 5. According to the Reserve Bank of India’s (RBI) weekly statistical supplement, the reserves decreased to $583.945 billion from $590.185 billion reported for the week ended January 29. India’s foreign exchange reserves plunges by over $6 bn (sify.com)

The amount of money repatriated by Filipinos abroad fell last year for the first time since 2001 as the pandemic upended the global job market. Philippine Remittances See First Drop Since 2001 (msn.com)

The safe-haven dollar started the week near two-week lows on Monday, as optimism about COVID-19 vaccine rollouts and a planned $1.9 trillion U.S. stimulus package drove up riskier currencies and stock markets across Europe and Asia. Dollar weakens as market optimism lifts riskier currencies | Reuters

Currency pairsExchange Rate as of 4:15 pm 8 February 2021(1) As of 9:30 am EST Exchange Rate as of 15 February 2021(2)(3)
AUD/USD0.7656 0.7782
USD/CAD1.2781 1.2658
USD/CNY6.4664 6.4542
EUR/USD1.2035 1.2123
USD/INR72.8500 72.6140
GBP/USD1.3714 1.3895
USD/JPY105.4400 105.3900
USD/MXN20.1300 19.9260
USD/DKK6.1785 6.1259
USD/NOK8.5428 8.4119
BTC/USD  45,583.4000
ETH/USD  1,743.7500
Sources: (1) Federal Reserve ; (2) Reuters-currency rates; (3) OANDA-crypto rates

15 February 2021

Interbank market news scan: Foreign exchange brokers …

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London was overtaken by Amsterdam as the main European market centre in January, as more shares were traded in the Dutch capital. The shift, which initially looked ominous for City traders, comes as Brussels still refuses to recognise most UK regulatory systems as equivalent to its own post-Brexit. London dominating EU with almost half of world’s currency trading despite Amsterdam surge (msn.com)

From January 3rd and long term forecasts, the last 4 weeks trade ranges are viewed in relation to significant MA”s to complete a full month. To AUD/USD, GBP/USD and EUR/USD was added 5 year averages. Overall, EUR/USD was the first currency in August 2020 to break above its 5 year average  at 1.1300’s then the 10 year average in December 2020 at 1.2100’s. EUR/USD is categorized in the class of a risk asset and non USD currency. Currency Market: Weekly FX round up (fxstreet.com)

As issues continue to surround the recent order by the Central Bank of Nigeria to banks not to provide financial services to crypto currency businesses, in this report take accounts of how some low-income Nigerians have had a life changing experience from trading in crypto currency within the past few years, despite its volatility. How Low-income Nigerians get lifeline from trading Crypto currencies – The Sun Nigeria (sunnewsonline.com)

Blockchain analysis firm, Chainalysis’ latest crime report has named Mirror Trading International (MTI) as the biggest cryptocurrency scam of 2020. Mirror Trading International Named Biggest Crypto Scam of the Year After Raking in $589 Million – Regulation Bitcoin News

Currency pairsExchange Rate as of 4:15 pm 8 February 2021(1) As of 10:09 pm EST Exchange Rate as of 14 February 2021(2)
AUD/USD0.7656 0.7768
USD/CAD1.2781 1.2678
USD/CNY6.4664 6.4542
EUR/USD1.2035 1.2128
USD/INR72.8500 72.5700
GBP/USD1.3714 1.3868
USD/JPY105.4400 105.0400
USD/MXN20.1300 19.9154
USD/DKK6.1785 6.1338
USD/NOK8.5428 8.4263
BTC/USD Does not report 47,982.5000 *
ETH/USD Does not report 1,835.5300 *
Sources: Federal Reserve (1) ; Reuters (2); *ONADA

Interbank market scan: Lagarde sees holding crypto as “unlikely.” Central Bank of Nigeria explains “no to crypto.” India pursues crypto law

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European Central Bank President Christine Lagarde on Wednesday said she didn’t consider bitcoin to be a real currency, adding that central banks won’t be holding it as reserve currency anytime soon. ECB president Christine Lagarde says it’s ‘very unlikely’ that central banks will hold bitcoin in the near future (msn.com)

Following its ban on cryptocurrency-related transactions in the country, the Central Bank of Nigeria has explained why it was done. CBN  boss disclosed that the digital currency is used for money laundering and terrorism. CBN explains why cryptocurrency transactions were banned (withinnigeria.com)

Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria (CBN) has condemned the apex bank’s reason for stopping cryptocurrency transactions in the country. Moghalu condemns CBN’s reason for banning cryptocurrency transactions (withinnigeria.com)

On Tuesday (February 9), minister of state for finance Anurag Singh Thakur said that a cryptocurrency bill was being finalised and it would be sent to Union Cabinet soon. Cryptocurrency bill: Here’s what you need to know (msn.com)

Are central banks on the verge of a currency war with the U.S? Global central bank interventions raise specter of ‘currency war’ | Morningstar

“Bitcoin needs a couple more big endorsements, and that could be the key to take prices above the $50,000 level,” Edward Moya, senior market analyst for the foreign-exchange broker Oanda, wrote Tuesday.  First Mover: As Wall Street Fixates on Inflation Hedges, Good Luck Finding Bitcoin | Nasdaq

Bitcoin ‘can’t be stopped’: Nigerians look to peer-to-peer exchanges after crypto ban. Some Nigerians plan to continue using bitcoin and other cryptocurrencies despite a directive issued by the Central Bank of Nigeria last week ordering banks to close down accounts associated with cryptocurrencies. First Mover: As Wall Street Fixates on Inflation Hedges, Good Luck Finding Bitcoin | Nasdaq

The Federal Reserve Board on Tuesday announced the second extension of a rule to bolster the effectiveness of the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). Like the earlier extensions, this one will temporarily modify the Board’s rules so that certain bank directors and shareholders can apply to their banks for PPP loans for their small businesses. Federal Reserve Board – Federal Reserve Board announces the second extension of a rule to bolster the effectiveness of the Small Business Administration’s Paycheck Protection Program (PPP)

Currency pairsExchange Rate as of 4:15 pm 8 February 2021 As of 1:00 pm EST Exchange Rate as of 10 February 2021
AUD/USD0.7656 0.7727
USD/CAD1.2781 1.2690
USD/CNY6.4664 6.4576
EUR/USD1.2035 1.2134
USD/INR72.8500 72.8500
GBP/USD1.3714 1.3841
USD/JPY105.4400 104.6600
USD/MXN20.1300 20.0543
USD/DKK6.1785 6.1317
USD/NOK8.5428 8.4504
Sources: Federal Reserve, Reuters

10 February 2021

Interbank market news scan: Tesla adds bitcoin to its balance sheet; Central banks, foreign exchange, cryptocurrency …

In the news …

Tesla’s move to invest $1.5 billion in bitcoin further solidifies cryptocurrency as an emerging reserve currency for technology companies. Tesla’s $1.5 billion bitcoin purchase points to crytocurrency as tech company reserve currency | ZDNet

The Group of Seven (G7) financial leaders would kick off debate on Friday on emerging market debt problems, implementation of digital taxation and central bank digital currency, Japanese Finance Minister Taro Aso said on Tuesday. Japan finance minister: G7 focus on emerging market debt, digital taxation and digital currency | Reuters

The French economy is still on course to rebound 5% this year despite the uncertainty created by the coronavirus pandemic, the head of the central bank said on Tuesday, reiterating its December forecast. French economy still on track for 5% growth this year: central bank (msn.com)

The U.S. Federal Reserve is beginning to incorporate the impacts of global warming into its regulatory writ, following in the footsteps of its global peers, according to a paper published Monday by the San Francisco Fed. Fed to weave ‘inescapable’ climate change risk into bank oversight (msn.com)

The Central Bank of Ireland (CBI) has told investment firms to beef up their surveillance of insider trading and market manipulation this year or face fines and other sanctions from the regulator. Central Bank aims to curb abuse as amateurs flood markets (msn.com)

Emerging market central banks delivered just one interest rate cut in December, signalling the fading out of an easing cycle that had started in 2019 and had exceeded the cuts during the 2008 financial crisis and the 2010 euro crisis. Emerging market central bank rate cuts fade further in January | Reuters

2:33 am EST, 9 February 2021

Interbank market scan: Elon Musk, the market mover; China serious about its digital currency; Central banks, foreign exchange, cryptocurrency

In the news ….

China’s new bank loans are expected to surge to a record high in January on a seasonal boost, a Reuters poll showed, while credit growth may be constrained by some marginal tightening of monetary policy as the central bank focuses on preventing risks. China’s January yuan loans seen at record high, central bank to cool credit growth in 2021: Reuters poll | Reuters

Nigeria’s central bank said it ordered deposit-taking banks and other financial institutions to close accounts dealing in cryptocurrencies because it was threatening the country’s financial system. Nigeria Central Bank Says Cryptocurrencies Were A Threat – Bloomberg

The Central Bank of Nigeria (CBN) issued a five-page statement Sunday clarifying its position on cryptocurrencies after a regulatory warning to local banking institutions on Friday sent shockwaves through social media. Nigerian Central Bank Says Its Ban on Crypto Accounts Is Nothing New | Nasdaq

Beijing and Suzhou will issue a total of 40 million yuan (US$6.2 million) in the latest trials of the nation’s digital currency this week in a bid to boost consumption over the upcoming Lunar New Year holiday. China digital currency: Beijing, Suzhou confirm latest trials as e-yuan tests top 100 million yuan | South China Morning Post (scmp.com)

Tesla and SpaceX CEO Elon Musk thinks crypto could be the future but his choice of token might not be Bitcoin, the dominant cryptocurrency. Elon Musk Hints At ‘Ironic’ Possibility Dogecoin Becomes A ‘Real Currency’ (ibtimes.com)

Hopes for the U.S. economic recovery seem to be transforming the dollar from a haven asset to the risk-on currency of choice. Dollar Morphs Into Risk-On Currency Amid U.S. Growth Hopes – Bloomberg

In making the case for a mammoth $1.9 trillion economic relief package, President Joe Biden and his acolytes had maintained that economists across the board agreed that now is the time to go big in the fight against the pandemic. Well, so much for that. A number of prominent economists and former policy makers — from Democrat Lawrence Summers to Republican Douglas Holtz-Eakin — have raised questions in the past week about the size of the package. So too have some economy watchers in the financial markets. Yellen, Summers Spar About Overheating Risk in Stimulus Plan – Bloomberg

Taiwan penalized Deutsche Bank AG and three other foreign lenders after a probe into speculation on the surging local currency last year involving grain companies. Taiwan Penalizes Deutsche Bank, 3 Others for Currency Trades (msn.com)

8 February 2021, 8:12 am EST

Interbank market scan: Central Banks. Cryptocurrency. Foreign Exchange. A dim jobs report and Biden does not see full employment for ten years ….

Nigeria’s central bank ordered deposit-taking banks and other financial institutions to immediately close accounts transacting in or operating cryptocurrency exchanges, saying such deals are “prohibited.” Nigeria Central Bank Orders Cryptocurrency Accounts to Close (msn.com)

Turkey’s lira hit its strongest level since August on Friday and cemented its position as the top-performing currency in the world this year, after the central bank governor told Reuters that interest rates were unlikely to be cut for a “long time”. Turkish lira jumps as central bank chief says rate cuts long way off | Reuters

A rise in cost of Nigeria’s short-term debt and a weaker naira rate to sell dollars to investors in a month’s time signal that the country’s central bank may devalue the currency for the third time in less than a year. Rising Nigerian Central Bank Yields May Signal Naira Devaluation (msn.com)

Central bank stimulus sustain rally in cryptocurrency. Bitcoin boom backstopped by central banks’ easy-money policies | Financial Times (ft.com)

New governor Naci Agbal does not expect Turkey’s central bank to begin considering cutting interest rates from 17% until much later this year given upward pressure on already high inflation, and rate hikes are still a possibility, he told Reuters. Exclusive: Turkey central bank chief Agbal says no rate cuts for a long time this year | Reuters

The announcement this week that Viviana Taboada and Mauricio Villamizar will join Colombia’s central bank board generated not only confusion over the spelling of Taboada’s first name, but predictions that interest rate cuts may be on the horizon. New Colombia central bank board members may back rate cuts | Nasdaq

Australia’s economic outlook has improved markedly thanks to the successful suppression of the coronavirus, but even under the most optimistic assumptions wage growth and inflation will still be too low by mid-2023, the country’s central bank warned on Friday. Australia central bank sees inflation staying too low even in most optimistic scenario (msn.com)

The announcement this week that Viviana Taboada and Mauricio Villamizar will join Colombia’s central bank board generated not only confusion over the spelling of Taboada’s first name, but predictions that interest rate cuts may be on the horizon. New Colombia central bank board members may back rate cuts | Nasdaq

President Joe Biden ripped the results of the final jobs report of Donald Trump’s presidency, and used the weak job creation to illustrate the urgency of passing his Covid relief package. Biden Rips Last Jobs Report Of Trump Presidency: ‘At That Rate It’s Going To Take 10 Years Before We Get To Full Employment’ (mediaite.com)

Interbank market scan: Ethereum hits all time high; central banks, foreign exchange, cryptocurrency

Turkish inflation quickened for a fourth month as the lingering impact of a weak lira led to a broad-based rise in prices. Turkish Inflation Pressures Central Bank to Keep Policy Tight – Bloomberg

China drained funds from the financial system after a key cost of short-term borrowing tumbled from its highest level since 2015, showing officials remain wary of excess liquidity. China Drains Funds From Banking System as Cash Crunch Eases (msn.com)

Ethereum hit all-time highs on Wednesday, breaking above $1,500, as traders bought the cryptocurrency ahead of the launch of ethereum futures on the Chicago Mercantile Exchange next week. Cryptocurrency Ethereum hits record high ahead of CME futures launch (msn.com)

Blockchain technologies have already been seamlessly integrated into many industrial companies, and the online gambling sector is the latest to have been revolutionised by this technology. The Impact of Cryptocurrency on the Gambling Industry | Finance Magnates

Shares of several companies with deep ties to the cryptocurrency market soared on Tuesday, Feb. 2. The stocks are surging because many of the leading cryptocurrency tokens are on the rise today, which should translate into stronger financial results for all of these companies. Why Cryptocurrency Stocks Are Soaring Today (msn.com)

ING expects that the bearish dollar trend will be tested further over the remainder of this quarter and has adjusted its currency forecasts slightly. The bank expects confidence in the economic rebound to strengthen again in the second quarter. Updated Currency Exchange Rate Predictions 2021-2022: ING (exchangerates.org.uk)

Much occurred in 6 months: elections, change from Republicans to Democrats, Covid, lockdowns, gazillions of central bank meetings, average Inflation Targets. The market and the target price doesn’t care to such things and will never care in the future. The target price and the price path to target is the only concern. Currency market: S&P’s 24 hour trade (fxstreet.com)